APP (AppLovin) GF Value Rank : 1 (As of Apr. 01, 2025)

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What is AppLovin GF Value Rank?

AppLovin has the GF Value Rank of 1.

GF Value Rank evaluates the exclusive GuruFocus valuation and performance of a stock, rated on a scale from 1 to 10. It is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

A higher score indicates a stock with a relatively low valuation and substantial potential for outperformance. Conversely, a lower score often reflects stocks that are either highly overvalued or deeply undervalued, both of which tend to underperform.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.

Competitive Comparison of AppLovin's GF Value Rank

For the Software - Application subindustry, AppLovin's GF Value Rank, along with its competitors' market caps and GF Value Rank data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

AppLovin's GF Value Rank Distribution in the Software Industry

For the Software industry and Technology sector, AppLovin's GF Value Rank distribution charts can be found below:

* The bar in red indicates where AppLovin's GF Value Rank falls into.

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AppLovin GF Value Rank Related Terms

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AppLovin Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » AppLovin Corp (NAS:APP) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

APP:Mexico 6RV:Germany

Address

1100 Page Mill Road, Palo Alto, CA, USA, 94304

Website

https://www.applovin.com

AppLovin is a vertically integrated advertising technology company that acts as a demand-side platform for advertisers, a supply-side platform for publishers, and an exchange facilitating transactions between the two. About 80% of AppLovin's revenue comes from the DSP, AppDiscovery, while the remainder comes from the SSP, Max, and gaming studios, which develop mobile games. AppLovin announced in February 2025 its plans to divest from the lower-margin gaming studios to focus exclusively on the ad tech platform. AppLovin's primary tool for future growth is Axon 2, which is an ad optimizer operating within the DSP that allows advertisers to place ads according to specified return thresholds.

Executives

Vasily Shikin	officer: Chief Technology Officer	1100 PAGE MILL ROAD, PALO ALTO CA 94304
Arash Adam Foroughi	director, 10 percent owner, officer: CEO & Chairperson	1100 PAGE MILL, PALO ALTO CA 94304
Victoria Valenzuela	officer: CLO & Corp. Secretary	1100 PAGE MILL RD, PALO ALTO CA 94304-1047
Herald Y Chen	director, officer: President & CFO	950 TOWER LANE, SUITE 1150, FOSTER CITY CA 94404-2127
Dawson Alyssa Harvey	director	1100 PAGE MILL RD, PALO ALTO CA 94304-1974
Georgiadis Mary Margaret Hastings	director	2500 LAKE COOK ROAD, RIVERWOODS IL 60015
Eduardo Vivas	director	1100 PAGE MILL ROAD, PALO ALTO CA 94304
Kkr Denali Holdings L.p.	10 percent owner	C/O KOHLBERG KRAVIS ROBERTS & CO. L.P., 30 HUDSON YARDS, NEW YORK NY 10001
Kkr Group Partnership L.p.	10 percent owner	C/O KOHLBERG KRAVIS ROBERTS & CO. L.P., 30 HUDSON YARDS, NEW YORK NY 10001
Craig Scott Billings	director	C/O WYNN RESORTS, LIMITED, 3131 LAS VEGAS BOULEVARD SOUTH, LAS VEGAS NV 89109
Katie Kihorany Jansen	officer: Chief Marketing Officer	1100 PAGE MILL RD, PALO ALTO CA 94304-1047
Todd R Morgenfeld	director	C/O PINTEREST, INC., 651 BRANNAN STREET, SAN FRANCISCO CA 94107
Kkr Group Co. Inc.	10 percent owner	30 HUDSON YARDS, NEW YORK NY 10001
Elena Arutunian	officer: Chief Accounting Officer	1100 PAGE MILL RD, PALO ALTO CA 94304-1047
Angel Pride Holdings Ltd	10 percent owner	ROOM 710, 7/F, WING ON HOUSE, NO. 71 DES VOREX ROAD CENTRAL, HONG KONG F4 0000